Reuters.com recently reported:
Multinational companies should refrain from tax-avoidance practices and pay their fair share, the head of euro zone finance ministers said on Saturday in a new endorsement of the European Union’s fight against tax-dodging. In the wake of the ‘Panama Papers’ revelations of widespread tax-avoidance practices, Brussels has toughened up its drive for fairness by tightening controls and adopting stricter rules.
The recent shock multi-billion euro tax demand on Apple was part of that trend as the EU also drafts plans for a common corporate tax base and a single European blacklist for tax havens.
OK, so what is wrong with this statement?
It is the premise that tax avoidance is a bad thing. But the truth is quite the opposite. Because we know for sure that low taxes are good for the economy and that high taxes harm the economy. This has been proven over and over and over throughout history.
So if corporations are keeping more of their wealth by avoiding taxes then that is a good thing for all of us. It is keeping money in the private economy and out of the hands of greedy, incompetent bureaucrats who have a history of wasting and stealing it. And that is helping the economy naturally in a way that we don’t even see.
It gets worse. Corporations don’t pay taxes anyway. The taxes that they do pay are passed on to consumers in the price of the corporations’ products. So corporate taxes are merely more taxes on the people of Europe and the US.
These highly-taxed, socialistic, welfare-state economies of Europe have terrible job creation numbers. They are static. They offer reduced opportunities for their citizens. They have lagged way behind the United States for more than 100 years. Their unemployment rates have typically been twice the rate in the US.
France is practically in a new recession today after decades of economic stagnation. Its recent quarterly economic growth report was almost zero. And France is one of the most successful economies. Italy, Spain and Greece are the most left-wing nations and have the worst economies.
Meanwhile highly socialistic, highly-taxed Japan has been in a deep recession since 1990, a fact ignored by the international media. Japan today has a national debt rate that is more than twice that of the United States.
The two biggest economic booms in world history happened in the United States in the 1920s and the 1980s. Both booms were triggered by steep tax reductions on the wealthiest citizens. Under president Calvin Coolidge top rates were reduced from 63% to 25%, setting off The Roaring 1920s.
Under president Ronald Reagan in the 1980s top tax rates were cut from 70% to 28%. This reduction did not reduce revenues to the federal treasury as liberals claimed it would; it increased them by 91% over 8 years and set off an economic boom that lasted for almost 30 years.
Look at the American economy today. Americans are running by the millions to lower-tax states like Texas, Florida and Georgia that have thriving economies. And thus we can assume that tax avoidance must certainly be having a stimulative effect on Europe’s economies.
Naturally tax avoidance is a bogeyman to socialism. But if all of these wealthy Euro corporations suddenly paid all of their taxes it would suck tens of billions of dollars, maybe much more, out of the private sector and Europe’s economies would take yet another nosedive.
So always remember the Golden Rule: What socialists say is bad is always good, and what socialists say is good is always bad. Now look at what else the Reuters article said:
… EU also drafts plans for a common corporate tax base and a single European blacklist for tax havens.
Thus the European Union bureaucrats are saying that no European nation should have any different or lower tax rate than any other. This would be like federal bureaucrats in Washington dictating that no US state could have lower taxes than any other.
Why not? Why not let the nations compete for business with different policies? To see what works best? And then others can follow the best policies.
But that is precisely why the EU does not want individual nations to set their own tax policies since that would expose and contradict the failed globalist/socialist philosophy that
*all people and businesses should be taxed heavily;
*this taxation should lead to relentless increases in government power; and
*New World Order autocrats like those in the European Union should set all policies, i.e., global government.
Meanwhile here is great news from Express.co.uk, the Daily Express newspaper in Britain about the slow collapse of the socialist/globalist European Union (note sentence in bold for emphasis):
Members of the influential Visegrad group, which comprises of Poland, Hungary, the Czech Republic and Slovakia, rejected migrant quotas and blasted the overbearing European Union Commission with an incendiary ultimatum. The group represents a faction of nations which have become increasingly concerned by authoritarian (EU demands), with Poland and Hungary both locked in bitter legal battles with the EU.
Their demands come after a separate clique of Mediterranean states, including France, Spain and Italy, formed their own interest group to counter the power wielded by (EU advocate and German chancellor) Angela Merkel.
The developments are a sign of the spiralling disintegration of the European Union which is seeing the bloc fray into a series of powerful factions, each fighting to impose their own interest on bureaucrats in (the EU headquarters city of) Brussels (Belgium).
In their statement the Visegrad group said: “Our ambition is to reassert the vision and principles enshrined in the Treaties and win back the trust of our citizens.”
The countries listed five key areas where they feel the European project has gone astray, and included concrete demands from other nations to fix the issues.
The first ultimatum was over the erosion of democracy by the increasingly authoritarian EU Commission, which is swamping member states in thousands of dictatorial laws.
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